HK Stock Market Move | Huaxin Building Materials Group (06655) rose nearly 3%. In the first half of the year, the company's overseas cement profitability improved significantly, and there is still considerable room for overseas capacity growth.

Huaxin Building Materials Group (06655) rose nearly 3%, up 2.17% as of press time, at HK$15.56, with a turnover of HK$25.3128 million. On the news front, Huaxin Building Materials Group previously disclosed its interim report. Changjiang pointed out that in 2026H1, the company's overall gross profit margin increased by 2.63 percentage points to 31.55% from 28.92% in the same period last year, mainly due to the dual increase in overseas cement sales volume and selling prices. Specifically, the gross profit margins of cement, aggregates, and concrete were 34.6%, 38.3%, and 16.1%, respectively, compared with 30.2%, 47.9%, and 13.1% in the same period last year. Overall, as of 2026H1, cement revenue accounted for 66.6% of the company's total, while overseas revenue accounted for 46.2%, becoming the core growth engine of the company's performance. In terms of overseas business, as of 2026H1, the company has established production bases in 14 overseas countries, including Tajikistan, Kyrgyzstan, Uzbekistan, Cambodia, Tanzania, Zambia, South Africa, Mozambique, Oman, Zimbabwe, Brazil, and Nigeria, with Brazil and Nigeria newly added compared with the same period last year. Its cumulative overseas operating and under-construction cement production capacity has reached 41.2 million tons. The bank believes that from a medium-term perspective, the company has a moderate asset-liability ratio, outstanding cash guarantee capability supported by smooth diversified financing channels, and considerable room for overseas capacity growth. Coupled with regional market dividends and the company's technological transformation and quality improvement, profit enhancement will become more prominent.